A vice president for Wells Fargo's (WFC) mortgage division said it's unlikely the company would open up its short sale programs for underwater borrowers who are current on their mortgage payments.
Bart Vincent, who oversees short sales for the bank, said he's unsure if the tactic should be used to reduce any potential losses for borrowers current on mortgage payments. Wells Fargo does allow homeowners to negotiate short sales if it determines they're at risk for "imminent default," which he said could include military service members on the move.
"I don't think as an industry we'd want to supplement everyone that has seen a drop in the value of their property," Vincent said on a panel at the Mortgage Bankers Association servicing conference under way in Orlando, Fla.
Wells Fargo receives 86% of its short sale requests from homeowners who are either more than 150 days delinquent or in foreclosure, according to Vincent.
— Andrew Scoggin